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Zayo Group Closes its Acquisition of AGL Networks
Adds 850 Route Miles and 270 Buildings to Network
LOUISVILLE, Colo., July 1 -- Zayo Group, a provider of bandwidth infrastructure and network-neutral colocation services, announced today that is has closed its previously announced transaction to purchase AGL Networks (AGLN), adding approximately 850 route miles of owned fiber footprint and 270 buildings to Zayo's Network. AGLN provided dark fiber bandwidth infrastructure services in Atlanta, Phoenix and Charlotte. Customers who purchase dark fiber services have access to the raw, unlit fiber optic strands that traverse throughout AGLN's 850 route mile fiber network.
"Zayo Group continues to focus on infrastructure-based acquisitions that complement or bolster our existing network assets," said Ken desGarennes, CFO of Zayo Group. "AGL Networks is a pure play dark fiber infrastructure provider and is expected to add $9-10M of post synergized EBITDA and $160M of total contract value to Zayo Group."
At AGLN, 100% of revenue came from dark fiber related services. AGLN had significantly above average sales performance in CY2Q10 and sold $237K of new Monthly Recurring Revenue (MRR) contracts. Churn at AGLN in CY2Q10 was in line with historical levels of < 0.3%/month. Other key financial and operational highlights as of the beginning of CY3Q10:
-- Annualized recurring revenue of $17M
-- Net install pipeline of $195K MRR
-- More than 60% of MRR is under contract through 2015 or beyond
-- Approximately 70% of revenue comes from AGLN's top 20 customers
-- Revenue by vertical:
-- National Carrier/ISP - 60%
-- Public Sector/Enterprise - 15%
-- Wireless - 11%
-- Data Centers/DR/Tech - 7%
-- Financial - 7%
"We aim to build on the success that AGLN has achieved and, as such, Zayo will look to further bolster our dark fiber product and related services offerings," said Dan Caruso, President and CEO of Zayo Group. "Dark fiber services act as a core building block upon which most telecommunications services, including fiber to the tower, web 2.0 applications, and other high bandwidth applications are built."
Zayo Group estimates the costs to reconstruct the AGLN assets would exceed $100M.
About Zayo Group
Based in Louisville, Colo., privately owned Zayo Group (http://www.zayo.com) is a provider of bandwidth infrastructure and network neutral colocation services. Zayo provides its bandwidth infrastructure services over its regional, metro fiber and fiber to the tower networks that span 141 markets and 23 states. Zayo Group is organized into three distinct business units: Zayo Bandwidth, which focuses on the carrier and wholesale segment, Zayo Enterprise Networks and zColo.
Source: Zayo Group
CONTACT: Kristin Steele, +1-303-381-3276, ksteele@zayo.com
Web Site: http://www.zayo.com/
Zayo Group Closes its Acquisition of AGL Networks
Adds 850 Route Miles and 270 Buildings to Network
LOUISVILLE, Colo., July 1 -- Zayo Group, a provider of bandwidth infrastructure and network-neutral colocation services, announced today that is has closed its previously announced transaction to purchase AGL Networks (AGLN), adding approximately 850 route miles of owned fiber footprint and 270 buildings to Zayo's Network. AGLN provided dark fiber bandwidth infrastructure services in Atlanta, Phoenix and Charlotte. Customers who purchase dark fiber services have access to the raw, unlit fiber optic strands that traverse throughout AGLN's 850 route mile fiber network.
"Zayo Group continues to focus on infrastructure-based acquisitions that complement or bolster our existing network assets," said Ken desGarennes, CFO of Zayo Group. "AGL Networks is a pure play dark fiber infrastructure provider and is expected to add $9-10M of post synergized EBITDA and $160M of total contract value to Zayo Group."
At AGLN, 100% of revenue came from dark fiber related services. AGLN had significantly above average sales performance in CY2Q10 and sold $237K of new Monthly Recurring Revenue (MRR) contracts. Churn at AGLN in CY2Q10 was in line with historical levels of < 0.3%/month. Other key financial and operational highlights as of the beginning of CY3Q10:
-- Annualized recurring revenue of $17M
-- Net install pipeline of $195K MRR
-- More than 60% of MRR is under contract through 2015 or beyond
-- Approximately 70% of revenue comes from AGLN's top 20 customers
-- Revenue by vertical:
-- National Carrier/ISP - 60%
-- Public Sector/Enterprise - 15%
-- Wireless - 11%
-- Data Centers/DR/Tech - 7%
-- Financial - 7%
"We aim to build on the success that AGLN has achieved and, as such, Zayo will look to further bolster our dark fiber product and related services offerings," said Dan Caruso, President and CEO of Zayo Group. "Dark fiber services act as a core building block upon which most telecommunications services, including fiber to the tower, web 2.0 applications, and other high bandwidth applications are built."
Zayo Group estimates the costs to reconstruct the AGLN assets would exceed $100M.
About Zayo Group
Based in Louisville, Colo., privately owned Zayo Group (http://www.zayo.com) is a provider of bandwidth infrastructure and network neutral colocation services. Zayo provides its bandwidth infrastructure services over its regional, metro fiber and fiber to the tower networks that span 141 markets and 23 states. Zayo Group is organized into three distinct business units: Zayo Bandwidth, which focuses on the carrier and wholesale segment, Zayo Enterprise Networks and zColo.
Source: Zayo Group
CONTACT: Kristin Steele, +1-303-381-3276, ksteele@zayo.com
Web Site: http://www.zayo.com/